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Tax office data for the 2015-16 financial year has revealed that close to 300,000 small businesses have utilised the $20,000 instant asset write-off.
Minister for Small Business Michael McCormack said that the average amount claimed through the concession more than doubled in 2015-16, giving a “shot in the arm that small business needs”.
“In 2015-16, the number of claims increased by 50,550 and the average amount claimed increased by $4,065 to $9,000,” Mr McCormack said.
“This means more money in the pockets of small businesses so they can grow their businesses, employ workers and pay them more.
“The instant asset write-off is directly helping small business' bottom lines and improving cash flow for small business which means more investment in local communities, higher wages and more local job opportunities.”
The instant asset write-off threshold was increased to $20,000 in 2015, and was extended to 30 June 2018 earlier this year.
Small businesses with an annual turnover of less than $10 million can access the concession, up from $2 million in previous years.
“Small business is a major contributor to our economy and employs almost half of our workforce. Creating the right conditions for the sector to thrive will create local jobs, build communities and continue to grow the economy,” said Mr McCormack.
“Cash flow is so important for small business operators and the instant asset write-off means that tradies can invest in better tools, cafes and restaurants can upgrade their equipment and all small businesses can reinvest to grow their business.
“These great results are set to continue with tens of thousands more small businesses able to access the instant asset write-off thanks to the government’s increase in the small business turnover threshold to $10 million per year.”
Mr McCormack has yet to indicate if the instant asset write-off will be further extended despite calls from small business owners to make the concession permanent.